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They thank you spelled out.
All right Agriculture Secretary Tom Vilsack has saying he things the impact of the drought tolerant crops may be peaking but Renee how group -- here chief and founder chief investment officer says climate volatility is here to stay in.
She joins us now to explain how you can make money off that -- welcome looks summer's winding down.
Why do you believe that we will still have the heat or perhaps the problems that the drought has brought us -- keep commodities high.
Well we think yields are actually lower than USDA is forecasting an even lower than some of the independent.
Reporters have predicted saying that wrong.
-- are -- we're at well actually just got back from Minnesota Iowa where we have the gulf hair and in research senator.
Where we do our -- on the ground checks.
And in one of the fields that was predicted to be about a hundred bushels per acre in normally gets about a 180 bushels per acre is down at sixty to seventy.
From the road to crop looks great but when you get into the field.
There's -- -- there's -- back there yield issues that we think are deeper than -- known right yup.
-- underestimating how bad -- yes.
We do is they think self if people want exposure to agriculture how -- they -- -- -- they play the actual commodities themselves or companies in agriculture.
Well we think an active manager.
Managing commodities as the best way to go that indices have to negative roll yield.
And our very difficult and some commodities are falling while others go up they have independent supply and demand fundamentals.
Inspire as a company getting your exposure.
We think it's the worst way to get exposure -- buying management of company.
A bushel of -- in a bushel of beans can't commit fraud.
Doesn't have any management problem that it is what idiots we think it's the commodity itself okay -- -- higher explaining this to our viewers because it is boots on the ground you're doing generally researcher not leaning on government numbers which I think is great.
He always watch them OK so.
Do you believe that you -- -- corn you've forgotten into these cornfields what else what else looks like it's going to be very expensive going forward well we think the whole foods sector.
Is on the -- -- and we don't think this is just.
Inflation -- that it's speculation.
We think are going through re pricing of commodities.
And it's -- natural.
After effect of three decades of paper stocks and -- outperformance.
Now we're just shifting into.
The productivity gains that we signed the paper market and in elasticity coming into the feed food.
Agriculture markets and commodities as we meet up with increasing demand due to emerging markets population moving up the food chain.
And supply -- at the same time it's a perfect storm and is here to stay.
That was a great line right now you don't like -- commodities -- -- -- I don't in fact we think the industrial metals have gone a little bit ahead of themselves we think copper we're actually little bit short copper.
We think the housing prices that where as shown in China today to be a little bit higher than expected could put off a little bit of the reserve requirement you can leave them.
If you believe them but in any event we think there is a little bit of a slowdown in China.
But they're going to eat they're going to procure their food supplies but -- fire is restocking.
There industrial metals we don't think so clearly you're bullish on corn you also like canola -- -- a lot of people on the program talking about canola.
Why well it's the feed component really is the protein protein and canola is about two times what the soybean meal is.
And so with dwindling supplies across the board -- soybeans canola car and we think that the meal replacement.
And the protein in canola makes it them.
A good substitute in the last half hour of the 3 o'clock we we had both Nicole peddling these and Jeff Flock talking about natural gas about a little bit of a pop -- Friday but it's still two dollars and change whereas before the past five years it's been fourteen.
What do you think about natural gas that we like to back him like 1516.
The front end is getting a pop -- -- you know of possible hurricane and then also storage levels.
Have decreased significantly from.
You know 50% against against the average to about template -- quiet and units how would you -- -- -- just futures.
Basically and we guy like -- say looking at 1415.
We think four dollars as a good average cost of production.
And right now.
We have the embers they're used to be a thousand more Nat gas -- strictly Nat gas right combination.
More than oil now -- he -- there's a thousand more oil rigs than Nat gas.
In addition to that we think that overall.
Demand is going to increase were going to be coming an export up to 10% of demand could be exported in another couple of years and if something.
Something significant happens in the political arena -- do get a T always -- -- and offered him a but I -- got her -- well positioned.
Thank you re enactment a very nice -- rationing in summer they have -- -- gulf there founder and chief.
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